KUALA LUMPUR (Sept 13): Steel product manufacturer Leform Bhd has received approval to list on the ACE Market of Bursa Malaysia and targets to be listed by the fourth quarter of 2022.

Leform managing director Law Kok Thye said listing on the ACE Market will enable the group to tap into the equity capital market to raise funds in embarking on its next expansion phase.

"Through the utilisation of listing proceeds, Leform can further solidify its footing in the steel industry with the enhanced financial flexibility and operational capabilities," he said in a statement.

Founded in 1995, Leform’s key manufacturing products are steel pipes and guardrails, as well as flat steel products such as slitted steel coils and sheets, while the trading arm sells a variety of steel products.

Through its range of offerings, it is able to cater to various end-user industry applications, including furniture and construction, in addition to industrial product manufacturing industries the likes of automotive parts and telecommunication tower pole part manufacturing.

Beyond its primary market in Malaysia, it also exports its products to international markets such as New Zealand, Cambodia and Singapore.

"Global steel consumption has been on the rise and this trend is expected to prevail in the foreseeable future. Zooming into Southeast Asia, Malaysia actually plays a key role in the steel industry, being the third largest exporter of steel in 2020," said Law.

"As for the domestic market, we believe the elevated demand from the construction sector, automotive part manufacturing as well as furniture industries will sustain and this bodes well with our growth plans going forward. Putting it together, our impending listing exercise comes at an opportune time against the aforementioned backdrop."

MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, managing underwriter and placement agent for Leform’s initial public offering exercise.

Bursa Malaysia data showed that the local stock market had witnessed 26 company listings so far this year. Of this total, 18 were listed on the ACE Market.